CJEU Interprets Compensation For Recovery Costs Under Late Payments Directive

Summary

On 1 December 2022, the Court of Justice of the European Union ("CJEU"), in delivering a ruling in the case of DOMUS-Software-AG vs. Marc Braschoß Immobilien GmbH (Case C-370/21), clarified that where a single contract provides for periodic delivery of goods or provision of services each requiring payment within a specific period, the fixed minimum sum of compensation for recovery costs due to creditors under Directive 2011/7/EU on combating late payment in commercial transactions (recast) ("Late Payment Directive") is due for each late payment and not due once for all late payments within the single contract.

Background to the case and judicial proceedings before the German courts